The original Gremlins was a financial success, and Warner Bros. asked its director Joe Dante to make a sequel straight away. Dante declined, because he saw Gremlins as having a proper ending, and thus a sequel would only be meant to be profitable. Moreover, the original film was a taxing experience for Dante, and he wanted to move on. Work on Gremlins 2: The New Batch continued without him, as the studio approached various directors and writers. Storylines considered included sending the gremlins to cities like Las Vegas or even the planet Mars. After these ideas fell through, the studio returned to Dante, who agreed to make the sequel after receiving the rare promise of having complete creative control over the movie; he also received a budget triple that of the original film.

Still, the film did not perform as well at the box office. Gremlins 2: The New Batch was released into US theatres on June 15, 1990, the same day as Dick Tracy. In its first weekend it made $9,702,804, and it ultimately made $41,482,207. It was thus only the thirty-first highest-grossing film of the year, behind a few other films in the comedy, horror or fantasy genre, such as Back to the Future Part III ($87,727,583), Edward Scissorhands ($56,362,352), and Arachnophobia ($53,208,180). It did, however, outperform Predator 2 ($30,669,413), Child's Play 2 ($28,501,605) and The Exorcist III ($26,098,824).